Ways and Means approves health care-related tax package

The House Ways and Means Committee has approved 11 health care-related tax bills. Members of the committee met July 11 and July 12 for the two-day markup. The House has not yet scheduled a floor vote on the bills. The measures are expected to be taken up by the end of the month, according to Chairman Kevin Brady (R-Tex).

Although several of the tax bills were approved with bipartisan support, the health care-related tax package is largely a Republican initiative. Republicans’ legislative priorities focused in particular on enhancing tax-favored Health Savings Accounts (HSAs).

HSAs "Health Savings Accounts are an important tool for families to set aside money that’s tax-free to pay for needed health care expenses," Brady said during opening statements. "They give choice and lower costs," he added.

However, Democrats consistently voiced opposition toward Republicans’ favorable policy stance on HSAs, often criticizing HSAs as being only for the wealthy. "The provisions we are considering today provide America’s wealthiest another option to stash tax-free money at a cost of $92 billion to tax payers," ranking member Richard Neal (D-Mass) said, citing to the Joint Committee on Taxation’s (JCT) cost estimates. According to Neal, HSAs "simply provide greater tax shelters for those with the means to take advantage of them."

The following 11 bills are headed to the House floor:

HR 6199: The bipartisan bill would amend the tax code to include certain over-the-counter medical products as qualified medical expenses;

HR 6312: The bipartisan bill would amend the tax code to add certain qualifying sports and fitness expenses to the definition of qualified medical expenses;

HR 6301: The bipartisan bill would amend the tax code to expand access to health savings accounts (HSAs) by providing high deductible health plans with first dollar coverage flexibility;

HR 6305: The bipartisan bill would amend the tax code to expand access to and enhance the use of HSAs by clarifying that certain employment related services are not treated as disqualifying coverage for purposes of HSAs. Also, the bill would allow an eligible individual to make HSA contributions if a spouse has a Flexible Spending Account (FSA), and it would allow FSA and Health Reimbursement Account (HRA) terminations or conversions to fund HSAs;

HR 6317: The bipartisan bill would amend the tax code to allow HSA-eligible individuals that participate in a direct primary care (DPC) arrangement not to lose their HSA-eligibility because of DPC participation;

HR 6306: The bill would amend the tax code to expand access to and enhance the use of HSAs by increasing HSA contribution limits, permitting spousal catch-up contributions into the same account, and creating a grace period for medical expenses incurred before the establishment of an HSA;

HR 6309: The bipartisan bill would amend the tax code to allow individuals entitled to Medicare Part A by reason of being over age 65 to contribute to HSAs;

HR 6311: The bill would amend the tax code and the ACA to modify the definition of qualified health plan for purposes of the health insurance premium tax credit and would allow individuals purchasing health insurance in the individual market to purchase a lower premium copper plan;

HR 6313: The bill would allow the carryforward each year of health flexible spending arrangement account balances;

HR 6314: The bill would amend the tax code to allow plans categorized as catastrophic and bronze in the individual and small group markets to qualify for HSA contributions; and

HR 4616: The bill would amend the ACA to provide for a temporary moratorium on the employer mandate and would provide an additional one-year delay of the "Cadillac" excise tax on high cost employer-sponsored health coverage.

Interested in submitting an article?

Health Reform WK-EDGE: Breaking legal news at your fingertips

Sign up today for your free trial to this daily reporting service created by attorneys, for attorneys. Stay up to date on health reform legal matters with same-day coverage of breaking news, court decisions, legislation, and regulatory activity with easy access through email or mobile app.

Create a PasswordPlease enter a PasswordYour password must be at least 6 characters longNo validation was done for leading or trailing spaces in password.

Yes, I would like to create an account.

I consent to the collection of my personal information by Wolters Kluwer Legal & Regulatory U.S., operated through CCH Incorporated and its affiliate Kluwer Law International, so that I can create an account to store my contact information and order history to facilitate ecommerce transactions. I understand that my personal information will be processed for this purpose in the United States where CCH Incorporated operates.

You may change or withdraw your consent at any time by contacting our Customer Service team at +1-301-698-7100 or [email protected]. For more information about our privacy practices, please refer to our privacy statement: www.WoltersKluwerLR.com/privacy.

Online subscription product purchases require that you create an account.

Email Address
This field is required
Please Type Valid Email Address
Email Address has a minimum length of 0.
Company
This field is required
Country
This field is required

Yes, send me information on similar products and content from Wolters Kluwer.

I consent to the collection of my personal information by Wolters Kluwer Legal & Regulatory U.S., operated through CCH Incorporated and its affiliate Kluwer Law International, so that I can be contacted about similar product(s) and content. I understand that my personal information will be processed for this purpose in the United States where CCH Incorporated operates. Additionally, if the products being inquired about are fulfilled by Kluwer Law International, my personal information will be shared with Kluwer Law International and processed in the Netherlands or the United Kingdom where it operates.

You may change or withdraw your consent at any time by contacting our Customer Service team at +1-301-698-7100 or [email protected]. For more information about our privacy practices, please refer to our privacy statement: www.WoltersKluwerLR.com/privacy.

Thank you!

We apologize!

Interested in submitting an article?

First Name
This field is required

Last Name
This field is required

Email Address
This field is required
Please Type Valid Email Address
Area of Expertise
This field is required
Article Idea for Consideration
This field is required

Yes, send me information on similar products and content from Wolters Kluwer.

I consent to the collection of my personal information by Wolters Kluwer Legal & Regulatory U.S., operated through CCH Incorporated and its affiliate Kluwer Law International, so that I can be contacted about similar product(s) and content. I understand that my personal information will be processed for this purpose in the United States where CCH Incorporated operates. Additionally, if the products being inquired about are fulfilled by Kluwer Law International, my personal information will be shared with Kluwer Law International and processed in the Netherlands or the United Kingdom where it operates.

You may change or withdraw your consent at any time by contacting our Customer Service team at +1-301-698-7100 or [email protected]. For more information about our privacy practices, please refer to our privacy statement: www.WoltersKluwerLR.com/privacy.

Success

We appologize

Request a Trial

Thank you for your interest in a free trial! We look forward to connecting with you.

First Name
This field is required

Last Name
This field is required

Email Address
This field is required
Please Type Valid Email Address
Phone Number
This field is required
Title (Optional)Company Name
This field is required
Organization Type
This field is required
Country
This field is required
State or Province
This field is required

Yes, send me information on similar products and content from Wolters Kluwer.

I consent to the collection of my personal information by Wolters Kluwer Legal & Regulatory U.S., operated through CCH Incorporated and its affiliate Kluwer Law International, so that I can be contacted about similar product(s) and content. I understand that my personal information will be processed for this purpose in the United States where CCH Incorporated operates. Additionally, if the products being inquired about are fulfilled by Kluwer Law International, my personal information will be shared with Kluwer Law International and processed in the Netherlands or the United Kingdom where it operates.

You may change or withdraw your consent at any time by contacting our Customer Service team at +1-301-698-7100 or [email protected]. For more information about our privacy practices, please refer to our privacy statement: www.WoltersKluwerLR.com/privacy.

Thank you!

We aplogize!

Message Us

Thank you for your inquiry! We look forward to connecting with you.

First Name
This field is required

Last Name
This field is required

Email Address
This field is required
Please Type Valid Email Address
Phone Number
This field is required
Company Name
This field is required
Country
This field is required
Topic (Optional)Account or Invoice Number (Optional)Comments (Optional)

Thank you. We will contact you soon!

We apologize, but we failed to receive this message.

Thank You!

Thank You.

Your request has been forwarded to a Wolters Kluwer representative who will contact you shortly!